An election monitoring group in Nigeria has accused the federal government of unlawfully withholding funds meant for local councils in Osun State, warning that the dispute could undermine democracy and basic public services.
In a statement on Wednesday, the Movement for Credible Elections (MCE) said statutory allocations to Osun’s 30 local government areas had not been released, leaving councils unable to pay salaries or provide services such as primary healthcare and basic education.
The group’s head of secretariat, Che Olawale Okunniyi, said the move was aimed at putting political pressure on Osun’s governor, Ademola Adeleke of the opposition Peoples Democratic Party, to align with President Bola Tinubu’s ruling All Progressives Congress (APC).
Join our WhatsApp Channel“This is not governance; this is blackmail,” Mr Okunniyi said, arguing that local government funds are guaranteed by Nigeria’s constitution and do not belong to the federal government.
The presidency has not responded to the allegations.
Local governments are recognised in Nigeria’s constitution as an autonomous tier of government, funded mainly through monthly allocations from the federation account. Any interruption to those payments can quickly affect frontline services and workers’ wages.
MCE also linked the funding dispute to a long-running legal battle over control of Osun’s local councils. It said several APC-backed chairmen and councillors were still occupying council offices despite court rulings nullifying their elections.
According to the group, a Federal High Court in Osogbo ruled in November 2022 that the council elections were invalid, a decision it said was upheld by the Court of Appeal in February and again in June 2025.
It alleged that the officials have refused to leave office and continue to operate with the backing of the police.
MCE said some of the affected council officials have now gone back to court seeking an extension of their tenure, which the group described as an admission that their terms had expired.
The organisation warned that using financial controls to settle political disputes could have wider consequences for Nigeria’s federal system.
“Normalising the financial strangulation of states and local governments based on partisan schemes sets a precedent that could destabilise Nigeria’s democratic order,” the statement said.
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It called on President Tinubu to order the immediate release of all outstanding allocations to Osun’s councils and to ensure that court judgments on the local government leadership are respected.
The MCE, whose steering council includes civil society and labour leaders such as Oby Ezekwesili, Pat Utomi and Ayuba Wabba, said it would mobilise public advocacy if the situation does not change.
Prosper Okoye is a Correspondent and Research Writer at Prime Business Africa, a Nigerian journalist with experience in development reporting, public affairs, and policy-focused storytelling across Africa




